Full version External/Internal Factors Paper (Coke)

External/Internal Factors Paper (Coke)

This print version free essay External/Internal Factors Paper (Coke).

Category: Business

Autor: reviewessays 18 June 2011

Words: 1965 | Pages: 8

External/Internal Factors Paper (Coke)

Plenty of factors, both internal and external impact the planning function for management within an organization. Regardless of size, age, revenue, product, or service, planning is the most fundamental and important component for management. By no means is the Coca-Cola Company an exception. Arguably, Coca-Cola is the most recognized, most popular, as well as the biggest-selling soft drink in history. Synonymous for Coke, the company produced nearly 550 million servings in 2007 selling other brands such as Sprite, Dasani, Bacardi, Fanta, Minute Maid, and Powerade generating a net operating revenue of $28.9 million. (Isdell, 2007). This paper will examine 4 major internal and external factors that impact managerial planning; globalization, technology, diversity, and ethics. In addition, will explain how managers can use delegation to manage the impact that these factors have on the four functions of management.


In a literal sense, one can simply define globalization as international integration; to take a product or service across oceans and cross cultures. The Coca-Cola brand has been built up for over a century and is recognized in over 300 countries. Nearly all corporate executives wish to take their product global. Essentially, well planned and well managed globalization creates name recognition and generates revenue.

Becoming a small fish in a gigantic pond creates a new series of problems. There is no such thing as a local problem in a global market. A problem overseas can spread like wild fire scaring stock holder and investors around the world.

In 1999 Coca-Cola experienced the flip side of globalization. The soft drink giant was hit with a heath scare that rocked Europe. France, Luxembourg, Belgium, and the Netherlands pulled cans off its shelves after reports of possible contamination. Consumer problems that had started in Belgium raced around the world ruining the world’s most powerful brand name affecting its stock price on Wall Street.

“[The value of Coca-Cola's brand, built up over more than a century, can be shaken as suddenly and capriciously as the Thai baht or the Indonesian ringgit. That is what globalization means. Companies, like currencies, are vulnerable to instantaneous flows of rumor. American multinationals are often in the driver's seat in this global marketplace, but they can occasionally get crushed under the wheels, too.]” (Ignatius, 1999).


From high tech developments to creative ideas, today’s technology is constantly improving and has a definite impact on management. Internally management strategies are changed due to advances in technology and externally technology has forced management to create different marketing strategies. When looking at the Coca-Cola Company there are not many options in upgrading their product with technology. Considering they produce drinking products technology can only do so much, so managers must use technology to create ways to keep consumers purchasing their product. A new idea that the Coca-Cola Company has put into effect is the Coke rewards program. With this program management has developed a way to use technology to help reward people, and keep them buying their products. For each Coca-Cola product that is purchased you receive a certain amount of rewards points, depending on the value of the item purchased. For example, if you purchase a twelve pack of any Coca Cola product you will receive ten rewards points allowing you to purchase items online, and if you bought a 32 pack you would receive 25 rewards points. These rewards are available online and vary from t-shirts to electronics; you can even enter to win vacations. One of the newer advances in technology allows you to exchange your Coke rewards points into music downloads that can be transferred to your portable mp3 device, such as an iPod. Due to the increasing advances in technology, management must strive to come up with new ideas that can be compatible with modern technology. When a new high tech item comes out that is highly popular within the consumer community Coca-Cola’s management team is impacted internally and externally. Internally they must find a way to relate their product to these high demand high tech devices, and externally they need to find ways to link it out into the public, keeping consumers interested in purchasing their products.


“The Coca-Cola Company is built around two core assets, its brand and its people. These two assets give us the opportunity to keep our central promise: to refresh the world in mind, body, and spirit, and inspire moments of optimism; to create value and make a difference. By building an inclusive workplace environment, The Coca-Cola Company seeks to leverage its worldwide team, which is rich in diverse people, talent and ideas” (The Coca-Cola Company, 2007).

The Coca-Cola Company, is a multi-billion dollar company that operates in over two hundred countries worldwide. Its manufacturing plants, bottling and distributions channels have presence in multiple continents; Africa, Asia, Europe, Latin America, North America and the Pacific. With its multiple distribution channels, The Coca-Cola Company provides approximately 1.5 billion consumer servings per day. Currently, The Coca-Cola Company employs over 90,500 people around the world. The Coca-Cola Company is a multinational, multilingual and multibillionaire company.

Brief History

It all started back on a regular afternoon, in the year 1886 in Atlanta, Georgia, when a pharmacist named John Pemberton, by curiosity decided to stir up a fragrant, caramel-colored liquid (syrup) and was combined with carbonated water. This drink, named Coca-Cola, was carried over to a near pharmacy, Jacob’s Pharmacy, and was first sold for .05 cents a glass. For the first year, Pemberton sold only 9 glasses a day. Pemberton past away in the year 1888 without ever knowing that the miracle syrup he had created would be a success.

Between the years of 1888-1891, a business man named Asa G. Candler purchased the rights to the miracle syrup for $2,300. Mr. Asa G. Candler took Coca-Cola into a business dimension. He started his distribution channel with local pharmacists and promoted the drinks with complimentary taste coupons and marketed the same with clocks, urns and calendars with the Coca-Cola brand. It was until 1894 that Coca-Cola drinks were bottled for the first time, when another business man named Joseph Biedenharn, came with this brilliant idea. Customer could now take the drink anywhere they desired.

The product and the brand needed to be safeguarded as the demand and intents of imitation grew over the years. Advertising was becoming very successful. In 1916 they manufactured the unique Coca-Cola contour bottle. Mr. Ernest Woodruff purchased the company from Mr. Candler in 1919. Robert Woodruff, son of Ernest, was a marketing genius. He first took Coca-Cola overseas in the year 1928, when Coca-Cola traveled with the U.S. Team to the Olympic Games held in Amsterdam. Woodruff introduced the convenient six packs which made a major impact amongst the consumers. From the mid 1940’s to 1960’s, the number of countries bottling the product had doubled. They introduced new flavors like Fanta, Sprite, TAB and Fresca. They were also acquiring other companies like Minute Maid. Over the next decades The Coca-Cola Company has introduced many new products, has acquired many other companies, has become a proud sponsor for Olympic Games, FIFA World Cup (soccer) and NASCAR racing amongst many others and has maintained a sustainable and profitable growth over the years.

Nowadays, The Coca-Cola Company markets more than 400 brands with over 2800 different products. The Coca-Cola Company offers multiple products to the customers, from carbonated drinks (sodas), to energy drinks, juices and juice drinks, soft drinks, sport drinks, tea and coffee and waters.

To mention some of the most popular products you can find in any supermarket, convenience or liquor store, vending machines, restaurant etc. are: Coca Cola, Coca Cola Zero, Fanta, Canada Dry, Dasani, Alhambra, Dr. Pepper, Hi-C, Minute Maid, Nestea, Powerade, Sprite, Squirt, Vault Zero.


“Refreshment is a language everyone understands, and no one speaks it better than Coca-Cola”(Coca- Cola Company, 2007).

With the rapid growth in the amount of employees that Coca -Cola has they have seek support from different directors of the company and like any company has delegations that the company managers used to fallow and guide their employees. Fulfilling all management internal or external factors that impact the four functions of management. For this reason they have rules of ethic in management that must be fallowed by all employees of Coca- Cola.

They follow the Code of Business Conduct that the company provides as a guide for all employees. The Coca -Cola guidelines of conduct, “ Our Company has an enduring reputation for integrity and ethical conduct. Our name and our products are trusted everywhere around the world. Our business is built on this trust and this reputation. It influences how consumers feel about our products, how bottlers and customers regard our work, and how shareowners perceive us as an investment. Because our success is so closely related to our reputation, it’s up to all of us to keep it strong” (Ethics and Compliance 2008).

Managers are hired to take control by planning, organizing, leading, and controlling. For this reason the guide of conducts teaches each employee of responsibilities that they have inside of the company as well as outside. Ethics means that each employee shall learn to respect one another regardless of religion, ethical background, and beliefs that permits them to perform in their work site without having to put aside their values as a person for the sacrifice of the job. As well as fallow all law rights that exist in the area of location. The Webster Dictionary defines Ethics as “the discipline dealing with what is good and bad and with moral duty and obligation” (Merriam Webster, 2008).

Work ethics has to do with how each individual acts at work towards other and how they present them self’s. Each manager seeks that their employees are honest, responsible, someone who has a good behavior towards other team members and self respect to their person. The Coca- Cola Company address all this issues in their code of business conduct guide. Each employee who enters Coca- Cola Company uses this guide and must sing their way in by promising to fallow each guideline. “The Coca Cola Company is committed to conducting its business with honesty and integrity, and in compliance with the law. The Board of Directors of the Coca- Cola Company has adopted this Code of Business Conduct to provide guidance on the handling of ethical issues and the promotion of an ethical culture. The Code will be administered by the Committee of Directors and Corporate Governance”(Code of Business, 2007).


Code of Business Conduct for the Non-Employee Directors of Coca-Cola Company and

Subsidaries. October 18, 2007 http://www.thecocacolacompany.com/ourcompany/pdf/COBC_Non-Employee_Directors.pdf

Ethics and Compliances, The Coca Cola Company, March 2008, Retrieved from


Ignatius D., (1999). A Global Marketplace Means Global Vulnerability. Global Policy

Forum. Retrieved March 8, 2008, from


Isdell E., (2007). A Letter from Our Chairman and Our President. The Coca-Cola

Company. Retrieved March 5, 208, from http://www.thecoca-colacompany.com/ourcompany/ar/leadershipmessages.html

Merriam Webster Dictionary, 2008, Retrieved March 8, 2008 from http://www.merriam-webster.com/dictionary/ethics

The Coca-Cola Company, 2007, Retrived March 8,2008,